North Carolina Down Payment Support Systems

Online Payments - These systems are the Down Payment Assistance System as well as the Mortgage Credit Certificate.

Should you meet the requirements for one of the programs and you also purchase a house between December 1, 2009 and January 1, 2009, you can even be eligible for the $8,000 tax credit only enacted into law.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home within the past three years. This is precisely the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and moderate incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther. An MCC “reduces your tax liability depending on a percentage of the mortgage interest which you pay.

In case you are eligible for the MCC, you can claim 20% of the interest you pay as a credit on your own federal income taxes. You can save around .

You will have the ability to combine this, if you do qualify for the MCC, for 2009. This may reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and every other individual expected to live in the residence who is 18 years of age or older.”

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limitations 1 Person $61,500 2 Individuals $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limits New House $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their down payment and closing prices may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer only has to pay and the load would pay around .

This program has more rigorous income limitations than the MCC program outlined above. Like the MCC application, it could be used in combination with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, however, can't be utilized in conjunction together with the MCC. This really is an either or scenario.

The income and house price limitations that apply in Durham Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Men $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New House $210,000 Existing Home $210,000